Can You Use Your HSA for Yoga Classes?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. These accounts are paired with high-deductible health plans, helping individuals manage healthcare costs. Confusion often arises regarding whether non-traditional wellness activities, such as yoga classes, can be covered by HSA funds. Understanding these regulations is important for proper utilization.

Defining Qualified Medical Expenses for HSAs

The Internal Revenue Service (IRS) outlines what constitutes a “qualified medical expense” for HSA purposes in IRS Publication 502. These expenses generally include costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body. Common examples of covered expenses include doctor visits, prescription medications, and preventive care services.

Expenses for general health or well-being are not considered qualified medical expenses unless they meet specific criteria for medical necessity. Activities solely aimed at improving overall fitness or reducing stress without a direct link to a diagnosed condition are not eligible. The distinction lies in whether the expense is primarily for the prevention or alleviation of a physical or mental defect or illness, as opposed to simply being beneficial to general health. The IRS definition under Section 213(d) of the Tax Code provides the overarching guidance for eligibility.

Specific Requirements for Yoga Classes

Yoga classes can be considered a qualified medical expense only when prescribed to treat a specific medical condition, not for general fitness or stress relief. This requires formal documentation from a licensed healthcare provider.

To substantiate medical necessity, a Letter of Medical Necessity (LOMN) is required. This document, issued by a physician or other licensed healthcare provider, must detail the patient’s specific medical condition or diagnosis. The LOMN must explain how yoga classes will treat, prevent, or mitigate that particular disease or condition, outlining the recommended treatment and its duration. Without such a letter, yoga classes are not eligible for HSA reimbursement, as they fall into the category of expenses for general health improvement.

HSA Reimbursement and Documentation

When using HSA funds for eligible yoga classes, individuals can either pay directly with an HSA debit card or seek reimbursement for out-of-pocket payments. If using an HSA debit card, the transaction is processed like any other debit card purchase. If paying out-of-pocket, individuals can later reimburse themselves from their HSA. Many HSA administrators offer online portals or mail-in forms for submitting reimbursement requests.

Maintaining thorough records for all eligible expenses is important for substantiating claims, especially in the event of an IRS audit. These records should include the Letter of Medical Necessity and receipts for the yoga classes, detailing the date, service, and amount paid. Although HSA administrators may not always require immediate submission of these documents, individuals are responsible for keeping them for at least three to seven years to prove eligibility if audited by the IRS.